While speaking at the TechCrunch Sessions Blockchain event in Zug, Switzerland, Vitalik Buterin, the man who created Ethereum, the second largest cryptocurrency by Market Cap, said that he sees no future for Centralized exchanges and they should “Burn in Hell”.
Vitalik doesn’t feel centralized exchanges make sense
Vitalik has not been a big fan of the Centralized business. In his recent comments, he has targeted the centralized exchanges and was quoted saying that they should burn in hell. His anger was with respect to the control and cost the exchanges have for a project or company to sell its own tokens. Vitalik comment for centralized exchanges was very sharp, to quote him
“I definitely hope centralized exchanges go burn in hell as much as possible,”
“there’s no reason some projects need to pay $10 to $15 million in listing fees to let people trade their tokens on centralized exchanges.”
According to him, centralized exchanges exist because they serve as an interface between the fiat world and the cryptocurrencies. “And the fiat world only has centralized gateways,” he said.
Although early days, Buterin likes crypto-to-crypto exchanges as there are already clear advantages from a user’s point of view. For example, one doesn’t need to sign up or login. The user can send money to a wallet and define an output address. This way, exchanges only act as input/output tunnels, moving tokens from one address to another in two different currencies.
Vitalik’s other comments from Zug
Ethereum creator Vitalik Buterin comment on multiple topics during an interview with Jon Evans the event. He was unexpectedly stable and said many times that everyone has different needs and it’s hard to live in a world where everything is centralized or decentralized. While possibly referring to Bitmain, the Chinese mining tool, which is moving toward a 51 percent of network hash rate, Buterin shared his concerns regarding Sichuan flood that is potentially affecting mining operations over there.
He also mentioned that the Ethereum foundation works very hard to keep decentralized but it does face a big challenge especially with respect to user authentication. To quote Vitalik on the same
“One of the big challenges to overcome to make Ethereum truly decentralized comes down to user authentication. Sure, it’s possible to generate a private key and a public key to managing your wallet yourself. Sending ETH is all about signing a transaction so it’s not that complicated. But what happens if you lose the keys? What happens if you lose your password? “If all user authentication methods end up failing it’s going to be hard to reach mainstream adoption”.
Buterin also talked about private blockchains and other projects inspired by Ethereum. He said that it was a sad state that a lot of these projects ended up not going very far and also some ended up being not decentralized at all.
Regarding Consensus, his views were that the issue is that there are multiple groups of people who truly believe they’re right and that’s what one needs to do something to ‘move forward’.
Vitalik has some strong but reasonable opinions on the way things are shaping up in the crypto space. His passion and vision seem unmatchable as his views bring out points which are less thought of.
What do you think is Vitalik correct on its analysis of the future or is it just a Mirage he is creating? Do let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.